Forex 28pair Currency Strength double-GAP Momentum Strategy

A thank you to all have done good hard work with dashboard trading and helping to develop new ideas like GVC, dingdong99, JibalaPasan, aeseme, hotpotato, marialuiza, dtlase.

For many years I look at the market in a different way. Here I present:

The 28pair Currency Strength double-GAP Momentum Strategy or short name double-GAP Strategy. ​

To make clear GAP is here used in a different way as a currency strength change over a specified period.

Market: here it is used in term of THE 28 FX pairs, based on the main (8) Currencies.

The market has to be seen always in equilibrium. If one currency is bought some other(s) must be sold. This we could call here money flow. (I may use terms in a different way as they are used usually but there are no specified terms for it jet, maybe we can find out as the thread is growing)

We like here to analyze the market as a whole it is build of 8 currencies. A pair is a part of it so we have 8 currencies and 28 pairs. (Exotic pairs we do not include for now.)

The goal of the strategy is to find out in what sentiment the market is and what pair is good for trade and what pair it is not. As a trader you should know if the market is trending or if it is consolidating or reversing, this will give you information how to trade. Do we look for continuation or do we look for pullback/reversal? This is THE very important question all of the time and this strategy will give you the answer! (You may be surprised that I put this terms on the whole market and not on a single pair, yes it is!). This we could call here market sentiment.

What would give a trader to know if a trend will continue, consolidate or reverse? Answers will be given here!

We also will include market cycles as it is related to open and close and time of news and week and some date in the month.

(Please excuse my first language is not English, if you find any mistake just make me a PM I will be very happy and edit to make it right.)

Now we will go to some examples for illustration. I prefer a graphical demonstration before numbers.

Definition GAP how it is used here:
Examples of a Currency GAP
example AUDJPY
take the currency strength of AUD and compare to x candles or minutes back to get the AUD GAP
take the currency strength of JPY and compare to x candles or minutes back to get the JPY GAP
IF AUD GAP is down and JPY GAP is up = sell AUDJPY
this is a double GAP !

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After we have seen the double GAP we need also understand the simple GAP which is often used. It is the currency strength change between the base and the quote currency. A double GAP is always a simple GAP too but a simple GAP is not always a double GAP.

A simple GAP can be:
Currency A is weak and currency B is WEAKER
or currency A is flat and currency B is stronger
or currency A is little weak and B is stronger
and this are weak trades and vulnerable to pullbacks

A double GAP means 2 separated triggers so we look at quote and base currency separated:
Currency A is weak and currency B is strong
or currency A is strong and currency B is weak
This applies to every TF (analyses in multi TF we will see later!).

To define a currency is weak or strong I look at the slope (angle) of at least the last 3 TF candles, better a clear path or a reversal at a higher Fibonacci market level. I will explain later the defined zones how have to look the slope. To be strong a up-slope from negative zones must be steeper than a up-slope within positive zones. Because if the currency is still in negative zone it have still weak sentiment until it cross the zero market line. To look only at numbers or arrows (like many indicators) give only a small picture or fraction of the information.

CStrength28 indicator will be also used with import data from the EA.
CStrength28 is showing:

1. Currency strength of the 8 with special calculations.
2. Market momentum: Trend, consolidation and reversal
3. Market momentum Fibonacci levels: market high levels used on currencies for potential reversal zones.

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How to get the CStrength28 indicator:

Please excuse me I will put a small price on it. This is not meant as a sell instead as a coffee or small donation for the research team to keep going. Hundreds of hours have been spend and sleepless nights to find this formulates and hints and levels. I often wake up in the night with a new idea and I write it down to not forget it until the morning!
Please do not repost the indicator at FF or any other place for free. Thank you!
For more information about the indicator please send me a message with your skype or email. All messages will be answered within 24h.

Due to such a fantastic response from all you people, I can not respond to PMs anymore. I need your email! Just send PM with your email. FF limitation is 24 message per day. I will answer all PM within 24h at least. If not check spam folder too. ​

As we are starting now in 2016 I will post new trades and setups for illustration. I am also busy with hotpotato creating an EA based on this strategy. So everyone is welcome to ask questions and give his ideas but please we do not need that many funny indicators, I dont use any of them.

Everybody is welcome to join here. This thread is more meant as a steady research how to improve your trading. It is meant as to find the right market conditions and the right time and pair with the hint how to trade. How you do finally manage your trades and what trading system you do use when you switch at the end to a chart will not (jet) be part of this thread but maybe later.

(unfortunately I have now to split the post because i can only post 4 pictures per post. So this was not original order of posting)
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Hi Bernhard. Saw your thread on FF. Like your concept of pairing strengthening currencies with weakening currencies rather than pairing strong currencies with weak ones.

Do you use MTF analysis with your cs28 indicator, i.e. if currency trades above extreme fib level, switch to smaller TF for earlier entry?